What is Area Median Income (AMI)?

Area Median Income (AMI) is the midpoint household income for a specific metro area or county, calculated annually by HUD and used to set income eligibility caps for affordable housing assistance programs.

The U.S. Department of Housing and Urban Development (HUD) calculates Area Median Income each year for every metropolitan statistical area and non-metropolitan county across the United States, including all Texas markets. AMI represents the middle point of household earnings in a specific geographic area-half the households earn more, half earn less.

For low-income housing programs, HUD uses AMI as the baseline to establish income eligibility thresholds. Common tiers include:

30% AMI: Extremely low-income households, often targeting those at or below the poverty line
50% AMI: Very low-income households
80% AMI: Low-income households

A household's eligibility depends on whether their gross annual income falls at or below the specified AMI percentage for their county or metro area. Because AMI varies by location, the same household income may qualify in one Texas county but not in another. For example, AMI in rural areas typically differs from urban centers like Houston or Dallas.

Housing authorities and property managers use AMI figures to determine tenant eligibility, set rent caps for subsidized units, and allocate federal funding. When searching for low-income housing programs, applicants will encounter AMI-based income limits that determine which properties and assistance programs they qualify for.